Key Things to Know About the Required Car Insurance in New Jersey
Covers other’s property damage and your medical expenses. Drivers in New Jersey are required to have PIP insurance, which pays for the driver’s and passengers’ medical bills after an accident, regardless of fault. Property damage liability insurance pays for damage to others’ property caused by an accident you were at fault for.
The minimum liability requirements may not be enough. Even though New Jersey’s no-fault system requires drivers to file injury claims with their own insurer, the at-fault driver can be sued if they cause an accident that results in $50,000 in personal injury protection coverage and uninsured motorist bodily injury coverage equal to the minimum required liability limits. As a result, it’s a good idea to purchase bodily injury liability insurance even though it’s not required, since it can help cover legal fees and other expenses if you cause a serious accident.
Liability insurance will not cover all events. Drivers should also consider purchasing other types of car insurance in order to better protect themselves. For instance, both collision insurance and comprehensive insurance cover damage to the policyholder’s car.
There are penalties for driving without the minimum requirements. If New Jersey drivers do not purchase New Jersey’s minimum liability requirements, they will be subject to penalties for driving without insurance such as hefty fines and license suspension.
You need enough liability insurance to cover your net worth. Having coverage equal to the value of the assets you own and all the money you have, minus your debt, protects you financially in case of a serious car accident.
When to Carry Only the Minimum Liability Coverage
Although almost every state requires drivers to carry liability insurance, the minimum coverage is not always enough to cover the cost of an accident. It’s always best to carry as much liability coverage as you can afford, especially if you have a high net worth. You can generally get away with a lower property damage liability limit if you want to save, however, since property damage liability claims are usually less expensive than bodily injury liability claims.… read full answer
If you don’t have many assets or think the risk is worth it, you might be comfortable with carrying only the minimum coverage. But no matter what, make sure you’re carrying enough insurance to comply with state law and avoid paying fines for driving uninsured.
Liability Limits on Auto Insurance
Liability limits on auto insurance are the maximum amount that your insurance company will pay for injuries and property damage in accidents that you cause. Liability limits are typically written as three numbers divided by slashes.
For example, Arizona’s liability coverage requirements are 50/30/10. That means drivers need to carry $50,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability coverage overall.
Why You Need More Liability Insurance Than the State Minimum
Your insurance company will never pay for anything beyond the limits of your policy. Using the Arizona example, if you cause an accident that leads to $70,000 in medical bills for the other driver, you will have to pay for $40,000 if you are only carrying the minimum insurance required. And if you can’t afford to pay the full amount, the other driver can sue, and you can have your assets seized or wages garnished to cover the remainder.
No, uninsured motorist coverage is not required in New Jersey – it is optional. Drivers can choose to buy at least $15,000 in uninsured motorist bodily injury coverage per person (at least $30,000 per accident) as well as at least $5,000 in uninsured motorist property damage insurance per accident.
Additionally, drivers have the option to purchase at least $15,000 in underinsured motorist bodily injury coverage per person (at least $30,000 per accident), along with at least $5,000 in underinsured motorist property damage insurance per accident.… read full answer
Uninsured/underinsured motorist coverage helps pay for a car accident if the at-fault driver doesn’t have enough insurance. Normally, the at-fault driver’s liability insurance pays for any property damage or injuries they caused. But if the other driver doesn’t have enough coverage, it can be time-consuming and difficult to sue them for funds to cover any bills. That’s where uninsured/underinsured motorist insurance can help save drivers time and money.
Even though New Jersey does not require uninsured/underinsured motorist coverage, it’s still a wise investment if you can afford it. In New Jersey, it’s estimated that 15% of drivers don’t have car insurance. This gives you a 1 in 7 chance that the other driver won’t have insurance if you get into an accident. Car accidents in New Jersey can be extremely expensive, too. For example, fatal accidents in New Jersey have a total cost of $798 million each year.
Key Facts About Uninsured Motorist Coverage in New Jersey:
Minimum Uninsured Motorist Bodily Injury: at least $15,000 per person and at least $30,000 per accident
Minimum Uninsured Motorist Property Damage: at least $5,000 per accident
Minimum Underinsured Motorist Bodily Injury: at least $15,000 per person and at least $30,000 per accident
Minimum Underinsured Motorist Property Damage: at least $5,000 per accident
Yes, personal injury protection (PIP) is required in New Jersey. Drivers in New Jersey are required to have at least at least $15,000 of PIP coverage for medical expenses, plus additional categories of coverage for especially serious accidents.
Personal injury protection helps ensure that everyone on the road in New Jersey has some financial assistance for medical payments in the event of a collision. Drivers in all no-fault states are required to have it because they are restricted in terms of when they can sue another driver for compensation after an accident. That means PIP coverage is their first line of defense if they face hospital bills or a long recovery from an injury.… read full answer
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